July's second round of COE bidding saw premiums across all car categories rise slightly as the number of bids held steady over this month.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went up by $699 (1.3 percent) to end the bidding tender at $53,000. 

Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, increased by $1,419 (2.5 percent) and ended at $57,508. 

In Cat E, the open category, prices rose by $1,499 (2.7 percent), with premiums closing at $57,501.

As demand for new cars continues to exceed the COE supply with minimal change in the number of bids received, the latest incremental rise in COE premiums should come as no surprise. However, due to the Government's announcement in the shrinkage of number of COEs available, we can expect COE prices to go up in the coming months as supply shrinks further.